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    China's Textile Industry Should Actively Respond To Operational Risks

    2012/3/8 9:56:00 9

    Beijing Brand Products

    China Textile Industry Federation released the economic situation analysis of the textile industry in Beijing in the afternoon of March 6th.

    The main risks facing China's textile industry in the first half of this year are: the number of exports will be low or negative growth; the domestic cotton market is complicated; the labor costs of enterprises are showing a rigid upward trend; small and medium-sized micro enterprises are still facing.

    financing

    Sluggish, high financing cost, unstable order quantity, etc.

    In this regard, the China Federation of textile industry calls on the parties concerned to stabilize the domestic cotton market, reduce the cost of bank loans, and reduce enterprises.

    tax revenue

    Burden.

    The industry is taking a series of measures, including deepening enterprise management, improving labor productivity, reducing production costs, speeding up technological pformation, strengthening new product development, improving product added value, and strengthening independent brand building.


    Sun Weibin, spokesman of China Textile Industry Federation, pointed out that in 2011, the main indicators of the industry maintained a relatively fast growth, and the operation situation was basically stable.

    However, all kinds of risks faced by the operation of the industry increased significantly compared with the previous year. The international market continued to slump, raw material prices fluctuate, production costs continued to rise, and the financing environment contracted and other factors increased the operating pressure. The growth rate of main economic indicators showed a slowing down trend, and the export volume and industry profit growth declined particularly.


    In 2011, 36 thousand Textile Enterprises above Designated Size reached an increase of 26.8% over the same period last year, the growth rate dropped by 4.8 percentage points compared with the first quarter, and the sales value was 5 trillion and 360 billion 170 million yuan, up 26.86% from the same period last year, down 4.6 percentage points compared with the first quarter.

    The total export volume of textiles and clothing was US $254 billion 120 million, an increase of 19.9% over the same period last year, and the growth rate was 7.2 percentage points lower than that at the end of April. Of these, the export price increased by 19.3% compared with the same period last year, and the number of exports increased by only 0.5% over the same period last year.

    According to the Federation's tracking data on key industrial clusters, the sales revenue of enterprises under the scale increased by 6.71% over the same period of 2011, and the profit grew by 9.9% year-on-year, far below the growth level of Enterprises above designated size.

    The proportion of 9 exports is greater than 20%.

    clothing

    Industrial clusters, the total profits of enterprises below scale increased by only 4.7% year-on-year.


    In the analysis of the operational situation of the textile industry in the first half of 2012, Sun Weibin said that the opening in 2012 was generally stable, but the industry still faced a series of risks, including the shrinking of the international market, the slowdown in the domestic market and the rising cost of production factors. In the first half of this year, the industry will be running in a tight and severe situation.

    Speeding up structural adjustment and pformation and upgrading, striving for national policy support, reducing operational risks and promoting steady economic growth are an arduous task facing the textile industry.


    The opening of the textile industry was basically stable in 2012.

    Large enterprises, independent brand enterprises, and domestic enterprises have a sufficient rate of operation and sufficient capital, and the starting rate is 80%~90%. The staff return rate is about 80% after the festival, and the turnover rate is 10%~15%.

    Some small and medium-sized enterprises are facing more difficulties. In particular, export processing small and micro enterprises, such as reduced orders, insufficient staff, tight funds and difficult pformation, need more attention from the government and industry.


      

    The main risks facing the industry in the first half of 2012 are:


    First, the continued escalation of the European debt crisis has a significant negative impact on the demand of the international market. The developed countries such as the United States and Europe have sluggish economic recovery, the unemployment rate remains high, the employment structure deteriorates, and consumer confidence is sluggish, which restricts the demand for textile and clothing.

    In the first half of 2012, China's textile and clothing export demand and competition pressure will be more prominent. In the first half of this year, the number of industrial exports will be low or negative.


    Two, in the first half of 2012, the textile industry will continue to show the main trend of the domestic market. However, with the slowdown of social investment growth, the weakening of export driven economy and the deepening adjustment of the economic structure, it is expected that the growth rate of the macro-economy will be reduced, and the growth rate of consumption may slow down compared with that of last year, which will directly bring about a slowdown in the growth of clothing consumption.


    Three, the domestic cotton market is complicated and confusing. If we use "cost plus"

    profit

    "Throwing and storing will drive domestic cotton prices up, and the difference between domestic and international cotton prices will continue to widen, and the international competitiveness of textile enterprises will be further weakened.

    The price of chemical fiber is affected by cotton prices and fluctuations in international crude oil prices, which may present a concussion and increase the operational risk of downstream enterprises.

    {page_break}


    The four is the obvious increase in the cost of labor in textile enterprises. The sample shows that more than 80% of the enterprises are short of employment, and the wage increases by more than 15%.

    Recruitment difficulties, unable to retain and improve the living treatment of workers, etc., have made the labor cost of enterprises showing a rigid upward trend.


    Five, textile small and medium-sized enterprises are still faced with problems such as poor financing, high financing cost and unstable quantity of orders. Especially for export processing enterprises, under the condition that the appreciation of RMB is still expected, the ability to resist risks is weak. Once these enterprises are shut down too much, they will directly affect employment and social stability.


    Three, policy recommendations and industry measures to ensure stable operation of the industry.


    Textile enterprises should cope with rising labor costs.

    raw material

    Price fluctuation, energy price rise and other factors need more effort. However, for the external environment such as cotton, finance, taxation, exchange rate and so on, enterprises can not digest it through their own efforts, and it is urgent for the state to introduce relevant policies to give attention and support.


    (1) policy recommendations


    1. stabilize domestic cotton market.

    At present, domestic and foreign cotton price difference is large and international cotton resources are sufficient, seize the opportunity to expand cotton imports, reduce the cost of cotton production of textile enterprises.

    This year, we should adopt a financial subsidy to store and store the reserve cotton.


    2. reduce the cost of bank loans.

    Focusing on solving the financing difficulties and financing difficulties of textile small and medium-sized enterprises, it is recommended that the regulatory authorities regulate the floating interest rate of banks, abolish the system of acceptance of bills of exchange, rectify the operation order of bank loans, and put the central supporting financing policies of SMEs into effect.


    3., lighten the tax burden of enterprises.

    To solve the problem of "high levy and low deduction" (value-added tax 17% deduction 13%), which has long troubled cotton textile industry, and lighten the tax burden of cotton spinning enterprises.

    We will expand the business tax to VAT pilot and expand it to the producer services sector in the textile industry.

    Considering the employment contribution of labor-intensive industries, the enterprise income tax is allowed to deduct a certain proportion of wage expenditure.


    4., implement the supporting policies for small and medium-sized enterprises.

    We should implement the support policies of the State Council to support small and medium enterprises, and accelerate the construction of industrial innovation platforms, public service systems and industrial alliances that benefit the small and medium-sized enterprises.


    5. support enterprises to "go out".

    Encourage superior enterprises to establish raw material bases, R & D centers and acquire brand channels abroad.

    The establishment of low-end production and processing enterprises abroad should strengthen macro guidance, prevent large areas from overflowing and reduce the impact on domestic employment.


    (two) industry measures


    1., deepen enterprise management and improve labor productivity.

    Facing the difficulties of "recruitment difficulty" and "labor cost", we should strengthen basic management and information application, improve labor productivity and reduce production costs.


    2. speed up technological pformation and upgrade the advanced level of equipment.

    Speed up technological pformation and innovation and upgrading, including eliminating backward technology and equipment, speeding up the development of high-end textile machinery, and ensuring the share of domestic equipment.

    Appropriate introduction of foreign advanced equipment to speed up the digestion and absorption of new technologies and re innovation.


    3., we should strengthen the development of new products and increase the added value of products.

    We should strengthen R & D and industrialization of key technologies such as high simulation, functional, differential and high-tech fiber materials and industrial textiles, and develop personalized, fashionable, low carbon green textile consumer goods and increase added value.


    4., strengthen the construction of independent brands and optimize the construction of marketing channels.

    We should promote the development of the dominant brand enterprises at the two ends of the industrial chain and promote the matching mode of the small and medium-sized enterprises.

    Acquisition and integration of foreign brand enterprises, as soon as possible to brand, marketing and other high value-added links.


    5., use financial instruments to resist foreign exchange market risks.

    To guide enterprises to use foreign exchange market products that are constantly enriched and developed, and adopt appropriate financial instruments to avoid exchange rate risks.


    6., expand market development and reduce trade frictions.

    We will continue to do well domestic trade exhibitions, actively participate in international exhibitions, and strengthen tracking, monitoring and early warning of key export markets.

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